We have revised our outlook for productivity growth upward a bit, going forward, relative to what we had the last time we were here.
There are a few things going on. One is that the economy is working through an adjustment to higher U.S. tariffs, and that will temporarily depress productivity growth. Then it comes back.
The new element is that AI is increasingly being deployed by Canadian companies. Our assessment is that this will boost productivity growth going forward, so it will be a little bit higher.
Certainly, affordability remains a big challenge for Canadians, and the war in Iran, which has raised gas prices for Canadians, is going to make that tougher.